Discontinued Operations, Net of Tax

9 Months Ended

Sep. 30, 2013

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations, Net of Tax

Note 9. Discontinued Operations, Net of Tax:

Discontinued operations, net of tax, consisted of the following:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
	(In thousands)
Net operating losses	$	(51	)	$	(146	)	$	(190	)	$	(416	)
Impairment losses		(18	)		(7	)		(135	)		(208	)
Net losses on sales of real estate		(15	)		(19	)		(16	)		(19	)
Income tax benefit		9			—			18			—
Discontinued operations, net of tax	$	(75	)	$	(172	)	$	(323	)	$	(643	)

Net operating losses relate to the operations and holding costs of our real estate owned included in discontinued operations. As of September 30, 2013, we had sold all of our operating real estate owned. We continue to have holding costs on our remaining real estate owned.

During July 2013, we foreclosed on the underlying collateral (limited service hospitality properties) of three loans with an estimated fair value at foreclosure of $2.3 million. We sold one of these properties in July 2013 for $1,175,000, received cash proceeds of $200,000 and financed the remainder. No gain or loss was recorded on the transaction. We sold another of these properties in September 2013 for cash proceeds of $965,000 and recorded a loss of $15,000.

During the nine months ended September 30, 2012, we foreclosed on and sold the underlying collateral (limited service hospitality properties) of two loans with a combined estimated fair value at foreclosure of $1,481,000. One property was sold for $1,375,000 including cash proceeds of $550,000 and financing of $825,000. The other property was sold solely for cash proceeds. No gain or loss was recorded on these sales. In addition, we sold a property during the nine months ended September 30, 2012 with an estimated fair value of $76,000 and recorded a loss of $19,000.

Impairment losses represent declines in the estimated fair value of our real estate owned subsequent to initial valuation.